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centermedic

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Funds are fungible, they just raised 3 billion.

I'll take them at their word.

Does this affect their threshold (percentage) of stock Softbank can own? 

No. Softbank buying back shares of their stock has no quantitative impact on their ownership stake of Sprint. Their ownership percentage of Sprint is only changed by them buying or selling Sprint's stock.

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I'll take them at their word.

No. Softbank buying back shares of their stock has no quantitative impact on their ownership stake of Sprint. Their ownership percentage of Sprint is only changed by them buying or selling Sprint's stock.

It isn't a matter of taking anyone's word on anything. Funds are fungible is a fact. If I have to projects that need funding and I need to borrow to fund one and find the other out of cashflow it is meaningless to sayer borrowed to fund A but don't worry we didn't borrow to fund B. Because borrowing to fund A allowed you to fund B out of profits or cashflow.

 

 

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Looks like the buyback plan was beneficial so far.

 

http://www.bloomberg.com/news/articles/2016-02-17/softbank-value-swells-as-much-as-16-billion-on-buyback-plan

 

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Stock buy backs always help investors. It isn't an investment that will increase revenue or profits for the company.

 

 

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  • 2 weeks later...

So the D/E ratio is often used as a measure of how healthy a company is. Sprints D/E is around .60. This is a point of concern but not horrible in my opinion. So here is the rub, if you think the company is undervalued then throw the D/E out of the window. Stock prices figure into valuation. You can insert your own valuation of the company and figure out what you think the D/E should be OR you can evaluate the companies plan to deal with debt and fuel growth. If you feel confident in the plan then investing may be a good idea. If you have little to no confidence in the plan then you should probably sell the stock. Most financial folk with a head on their shoulders are forecasting healthy profit gains for Sprint this year.

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Sprint stock has settled back into the lower $3 range.  Let us not see $2 again!

Sprint has now ended today at $4.  :)

 

I will admit that that I sold off some of my Sprint position @ 3.97 to buy back in if the volatile stock drops to the low $3 again.

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  • 2 weeks later...
  • 3 weeks later...

As the authors write, "The company's debt problems are no secret."  Aside from a possible future accounting change, they provided no insight into whether Sprint's current efforts would improve its cash flow situation and why.

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It's Moffet. I'm only surprised he gets the attention he does, still. It's like asking DigiTimes what is going to be on the next iPhone.

 

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Is it time to sell S. It's lingering around $4

 

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I break even at $4.24 so I will try to hold out a bit more, but if history repeats itself, it'll probably drop back down to the lower $3s within a month.

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Is it time to sell S. It's lingering around $4

 

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I sold a small portion of my Sprint position today at breakeven.  With the overall market back to reaching 2016 highs, I am converting more of my portfolio to cash for future bad times.

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I break even at $4.24 so I will try to hold out a bit more, but if history repeats itself, it'll probably drop back down to the lower $3s within a month.

I still have 12-18 months on my hold strategy.

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  • 2 weeks later...

Sprint stock above $4. Really contemplating whether I should sell now or not.

 

EDIT: Finally decided to sell them off. $4.13/share. Watch it go up to $4.50 in the next month. Just my luck. haha

EDIT2: So, Sprint is now $4.28. Damn it. I needed $4.24 for awhile now and I decide to sell for a slight loss and then they go and do that.

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I just sold another small portion of my Sprint holdings at $4.45; need the stock to get back to $6 and beyond to break even on some much older positions from 2+ years ago.

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